WTI Crude Heads for Longest Gain In Three Months

West Texas Intermediate rose for a fifth day, its longest increase since April, on that signs of economic recovery in the U.S. and Germany will support fuel consumption.

WTI futures climbed as much 0.8 percent. German retail sales rose more than forecast in May, adding to signs that a recovery in Europe’s largest economy has gathered pace this quarter. Fewer Americans filed claims for weekly unemployment benefits and consumer spending rebounded in May, U.S. government data showed yesterday. Brent’s premium to WTI shrank after closing at the narrowest since January 2011.

“Oil trading is mostly macro-driven today,” said Andrey Kryuchenkov, an analyst at VTB Capital in London who sees WTI meeting “very strong resistance” next month at $99 a barrel. “Refinery runs in the U.S. are very healthy, but the upside for crude will still be limited by the long-term comfortable cushion of supply.”

WTI for August delivery increased as much as 77 cents to $97.82 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since June 20, and was at $97.33 at 11:55 a.m. London time. The contract rose $1.55, or 1.6 percent, to $97.05 yesterday, the biggest gain since May 3. The volume of all futures traded was 35 percent higher than the 100-day average. Futures are up 5.8 percent this month and little changed in the second quarter.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.